Re-establishing a stable and transparent foundation, restoring trust and redirecting the focus of financial institutions to fulfill their social purposes will not happen through the legislative process alone.
"A spectre is haunting Europe." No, its not the revolution that Karl Marx supposed would come about. It is the simple act of removing all of our money from the big banks, and doing so en masse on the same day -- December 7th.
Senator Chris Dodd is a tactical legislative genius - keep this clearly in your mind during the days ahead. In terms of maneuvering for the outcomes he seeks, managing the votes, and controlling the floor, you have rarely seen his equal.
What Paul Krugman and other smart economists who don't prioritize breaking up these big banks don't seem to get is that anytime anyone gets too much power, good policy and sound economic theories and formulas all get trumped.
If after all the fanfare, photo ops, and promises to fight, the Obama administration shamefully doesn't manage to get the Volcker rules into an already weak financial reform bill, I hope Volcker doesn't wait until the next life to speak out.
Senator Chris Dodd has good political antennae. He knows that his financial reform bill will come under severe pressure because it has a weak heart -- the provisions that deal with "too big to fail" are simply "too weak to make any sense."